Navigating the Texas foreclosure procedure can feel frustrating when you're stressed about losing your home. But lenders need to follow federal and Texas foreclosure laws, and these laws include important foreclosure notice requirements developed to provide you reasonable caution before they take any action or sell your home at a foreclosure sale. If you have actually gotten a foreclosure notification or are simply worried about what happens if you fall behind on your mortgage payments, you must discover your rights and the actions you can require to stop a foreclosure.
This guide breaks down what happens during the Texas foreclosure procedure, explains what each notice indicates, and describes your options to avoid foreclosure. With this understanding, you can make clever, positive decisions for your home and your household. You'll likewise have the ability to maximize your circumstance and, hopefully, work out a way to conserve your home or at least survive the process with as little stress and anxiety as possible.
What Are My Rights During Foreclosure in Texas?
When Can a Foreclosure Start in Texas?
What Kinds of Foreclosure Are Available in Texas?
How Long Does Foreclosure Take in Texas?
Texas Foreclosure Timeline and Steps
How to Stop Foreclosure in Texas
Can I Get My House Back After a Texas Foreclosure?
Are Deficiency Judgments Allowed in Texas?
Texas Foreclosure Process for Home Equity Loans Is Different
Get More Foreclosure Help and Information
What Are My Rights During Foreclosure in Texas?
Under federal law, the servicer generally can't officially begin a foreclosure till you're more than 120 days overdue on payments.
Before the foreclosure crisis, federal and state laws managing mortgage servicers and foreclosure procedures were reasonably restricted and tended to favor foreclosing lending institutions. However, federal and state laws now heavily regulate loan servicing and foreclosure procedures. The majority of the laws provide protections to debtors. Servicers typically have to supply borrowers with loss mitigation chances, represent each foreclosure action, and strictly comply with foreclosure laws.
Also, many people who secure a loan to purchase a domestic property in Texas sign a promissory note and a deed of trust. These documents offer property owners legal rights, such as the right to a preforeclosure notification called a "breach letter."
In a Texas foreclosure, you also deserve to receive particular foreclosure notices during the process, get present on the loan to stop the foreclosure sale, receive unique defenses if you remain in the military, and get any excess money after a foreclosure sale, to name a few things.
When Can a Foreclosure Start in Texas?
Under federal law, the servicer usually can't officially start a foreclosure till you're more than 120 days past due on payments, based on a couple of exceptions. (12 C.F.R. § 1024.41 (2025 ).) This 120-day preforeclosure period provides most house owners lots of time to make an application for loss mitigation with their loan servicer.
What Types of Foreclosure Are Available in Texas?
If you default on your mortgage payments in Texas, the loan provider might foreclose utilizing a judicial or nonjudicial method.
How Judicial Foreclosures Work
A judicial foreclosure starts when the lending institution submits a lawsuit asking a court for an order permitting a foreclosure sale. If you don't respond with a composed answer, the lending institution will automatically win the case. But if you pick to protect the foreclosure suit, the court will evaluate the proof and determine the winner. If the lending institution wins, the judge will enter a judgment and purchase your home cost auction.
How Nonjudicial Foreclosures Work
If the loan provider selects a nonjudicial foreclosure, it should complete the out-of-court procedures explained in the state statutes. After doing so, the lending institution can offer the home at a foreclosure sale.
Most lenders go with the nonjudicial process due to the fact that it's quicker and more affordable than prosecuting the matter in court.
How Long Does Foreclosure Take in Texas?
The nonjudicial foreclosure process, from the Notice of Default and Intent to Accelerate (see listed below) to the foreclosure auction, can take as low as 41 to around 90 days. However, consisting of the 120-day preforeclosure delinquency period, the entire process might take around 6 or 7 months in overall, though it can be shorter in many cases.
Texas Foreclosure Timeline and Steps
Again, most property foreclosures in Texas are nonjudicial. Here's how the procedure works.
Notice of Default and Intent to Accelerate in a Texas Foreclosure
Texas law needs the servicer to send you (the borrower) a notice of default and intent to speed up by qualified mail that supplies a minimum of 20 days to cure the default before a notice of sale can be given. The 30-day breach letter sent pursuant to the terms of the deed of trust can satisfy this requirement. (Tex. Prop. Code § 51.002 (d)
( 2025).) The notification is sent to the borrower's last known address and should consist of the amount due and the date it needs to be paid.
Under Texas law, the statute of restrictions for a judicial or nonjudicial foreclosure is 4 years, starting the day after the cause of action accumulates. (Tex. Civ. Prac. & Rem. Code § 16.035 (a), (b),( d)( 2025 ).) Generally, the accrual date is the loan's maturity date. But if the mortgage loan consists of a velocity stipulation, the statute of restrictions starts at the time of velocity. (Tex. Civ. Prac. & Rem. Code § 16.035 (e )( 2025 ); Holy Cross Church of God in Christ v. Wolf, 44 S.W. 3d 562, 566, Tex. 2001). To speed up a mortgage loan, the lender needs to provide the customer clear notifications of the intent to speed up and the real acceleration. (See Ogden v. Gibralter Sav. Ass' n, 640 S.W. 2d 232 (1982 ).) The four-year statute of limitations begins when these notifications are sent.
Notice of Sale in a Texas Foreclosure
After the treatment period has actually ended and at least 21 days before the foreclosure sale, the servicer sends a notification of sale through qualified mail to each debtor bound to pay the financial obligation. The notification of sale will also be:
- posted at the court house door in the county where the residential or commercial property lies
- filed with the county clerk in the county where the residential or commercial property lies, and
- posted online. (The county should likewise publish the date, time, and location of the sale on the very same site page on which the notification is published.) (Tex. Prop. Code § 51.002 (b ),(
f-1)(2025).)The notice of sale need to include the date, time, and area of the sale, along with a disclosure geared toward military servicemembers that they must inform the sender of the notification about their military status. (Tex. Prop. Code § 51.002 (i) (2025).)The federal Servicemembers Civil Relief Act supplies legal defenses to military workers who might lose their home to foreclosure.
Foreclosure sales are generally held on the very first Tuesday of every month between 10:00 a.m. and 4:00 p.m. at the county courthouse. The sale should start at the time stated in the notification of sale however no later than 3 hours after the time set up on the notification of sale. (Tex. Prop. Code § 51.002 (a)
( 2025 ).)A couple of possible methods to stop a foreclosure consist of renewing the loan, exercising a loss mitigation option, redeeming the residential or commercial property before the sale, or filing for insolvency.
At the sale, the loan provider usually makes a credit bid. The lender can bid as much as the total amount owed, consisting of costs and costs, or it may bid less. In some states, including Texas, when the lender is the high bidder at the sale however bids less than the total financial obligation, it can get a shortage judgment (see below) against the borrower. If the lending institution is the greatest bidder, the residential or commercial property ends up being "genuine estate owned" (REO).
But if a bidder, say a 3rd party, is the highest bidder and provides more than you owe, and the sale leads to excess proceeds-that is, cash over and above what's needed to settle all the liens on your property-you're entitled to that surplus cash.
Eviction
If you stay in the home after a foreclosure sale, the purchaser of the residential or commercial property is needed to provide you with a "notice to leave" before filing an expulsion case. In Texas, this kind of case is referred to as a "forcible detainer" action.
In this article, you'll discover information on foreclosure laws in Texas, with citations to statutes so you can find out more. Statutes alter, so examining them is always a great concept. How courts and agencies translate and use laws can change. And some guidelines can even differ within a state. These are just some of the factors to think about seeking advice from a lawyer if you're facing a foreclosure.
How to Stop Foreclosure in Texas
A few potential ways to stop a foreclosure and keep your home consist of renewing the loan, exercising a loss mitigation choice (such as a loan modification), redeeming the residential or commercial property before the sale, or filing for bankruptcy. Alternatively, you may be able to exercise a brief sale or deed in lieu of foreclosure and avoid a foreclosure. But you'll need to give up your home with either of these alternatives.
Reinstating the Loan
Texas law permits the borrower to obstruct a nonjudicial foreclosure sale by "renewing" the loan (paying the overdue quantity) within 20 days after the loan provider serves the notice of default by mail. (Tex. Prop. Code § 51.002(d) (2025 ).)
Also, most deeds of trust supply extra time to restore. Check your loan documents to discover if you have more time to finish a reinstatement.
Declare Bankruptcy
If you're dealing with a foreclosure, declaring personal bankruptcy might assist. If a foreclosure sale is arranged to happen in the next day or two, the very best way to stop the sale right away is by declaring insolvency. Once you file for insolvency, something called an "automated stay" enters into effect. The stay functions as an injunction, restricting the loan provider from foreclosing on your home or attempting to collect its financial obligation, a minimum of briefly.
In lots of cases, applying for Chapter 7 bankruptcy can delay the foreclosure by a matter of months. Or, if you desire to save your home, applying for Chapter 13 personal bankruptcy may be the response. To learn about the choices readily available, speak to a local personal bankruptcy lawyer.
Can I Get My House Back After a Texas Foreclosure?
One method to stop a foreclosure is by "redeeming" the residential or commercial property. To redeem, you need to settle the full loan quantity before the foreclosure sale. To do this, you 'd require to get your hands on a lot of money relatively quickly. So, few homeowners have the ability to complete a redemption before losing their home in a foreclosure sale.
Some states likewise offer foreclosed debtors a redemption period after the foreclosure sale, during which they can purchase back the home. However, Texas law doesn't offer borrowers a statutory right of redemption after a foreclosure. Once your Texas home has been foreclosed, you can't redeem it to get it back.
Are Deficiency Judgments Allowed in Texas?
In a foreclosure, the customer's overall mortgage financial obligation frequently surpasses the foreclosure sale cost. The distinction between the total debt and the list price is called a "deficiency." For example, state the total debt owed is $300,000, however the home costs $250,000 at the foreclosure sale. The shortage is $50,000.
In some states, the lending institution can look for a personal judgment versus the debtor to recuperate the shortage. Generally, once the loan provider gets a shortage judgment, the lender might collect this amount-in our example, $50,000-from the debtor.
Texas foreclosure laws allow deficiency judgments.
Texas Deficiency Judgment Laws
In Texas, the lending institution might acquire a shortage judgment after a nonjudicial foreclosure. The lending institution should file a claim for a shortage judgment within two years after the foreclosure sale. (Tex. Prop. Code § 51.003
( a) ). However, Texas state law allows the customer to get credit for the residential or commercial property's fair market worth. So, the debtor is entitled to a balanced out in the shortage quantity if the residential or commercial property's reasonable market price is higher than the foreclosure list price. (Tex. Prop. Code § 51.003( b), (c )( 2025)
.) Texas Foreclosure Process for Home Equity Loans Is Different
In Texas, how a foreclosure will work depends on the type of mortgage that's being foreclosed. While there are several various types of loans, the most common are:
- purchase cash loans (a "purchase money loan" is a loan gotten to purchase the residential or commercial property).
- purchase money 2nd loans, and.
equity loans, like home equity loans and home equity credit lines.
Again, most foreclosures in Texas involving purchase money loans are nonjudicial. But equity loan foreclosures are a little different. Under Texas law, the lender must use a quasi-judicial process to foreclose this kind of loan.
In this procedure, the lender must get a court order approving the foreclosure before carrying out a nonjudicial foreclosure. Also, Texas law does not permit deficiency judgments following the foreclosure of a home equity loan.
Home Equity Loan Foreclosures Involve an Additional Step: The Lender Must Litigate
Foreclosing an equity loan includes another action that falls in between sending a breach letter and notification of sale: The loan provider needs to submit an application in court asking for an order allowing the foreclosure. (Texas Rule of Civil Procedure 735, 736; Texas Constitution, Article XVI, § 50 [a] [6] [D] (2025 ).)
Responding to the foreclosure. The application needs to be served to you by mail, and you get 38 days from the date of sending by mail to file a reaction. If you decide to respond, your reaction needs to remain in the appropriate format and might remain in the type of a general denial, but must affirmatively plead:
- why you believe you didn't sign the defined loan arrangement document.
- why you're not obligated to make payments.
- that the number of months of the alleged default (that is, the variety of months the loan provider says you lag in payments) is inaccurate, or that the reinstatement or settle amounts the lender provided are materially incorrect.
- that any document connected to the application is not a real and correct copy of the initial, or.
- that you made the payments (and you'll need to supply evidence). (Texas Rule of Civil Procedure 736.5 (2025 ).)
You can't raise any independent claims for relief. To combat the foreclosure on other premises, you'll need to submit your own suit.
What occurs if you submit an action. If you submit a response to the application, the court sets a hearing that, like the action, is limited in scope. The only problem in this sort of proceeding is whether the lender can get an order permitting it to continue with foreclosure under the law and the terms of the loan contract. (See In re One West Bank, FSB, 430 S.W. 3d 573 (Tex.App. 2014)).
If the court grants the lending institution's application at the hearing, the foreclosure will continue. The lender will then send you a foreclosure sale notification.
Foreclosure Sale
Again, foreclosure sales are usually held the first Tuesday of monthly in between 10:00 a.m. and 4:00 p.m. at the county court house. The sale needs to begin at the time stated in the notice of sale, however no later on than three hours after the time arranged on the notification of sale. (Tex. Prop. Code § 51.002 (2025 ).)
Deficiency Judgment Following the Home Equity Loan Foreclosure
Texas law does not permit the lending institution to get a shortage judgment versus you after foreclosing an equity loan. (Texas Constitution, Article XVI, § 50 [a] [6] [C] (2025 ).)
Get More Foreclosure Help and Information
For more info on federal mortgage maintenance laws and foreclosure relief choices, go to the Consumer Financial Protection Bureau (CFPB) site. The Texas Department of Housing and Community Affairs also provides information about foreclosures, consisting of foreclosure FAQs, for Texas property owners. In addition, the Texas State Law Library has helpful info about the Texas foreclosure process.
If you have concerns about Texas's foreclosure process or want to discover prospective defenses to a foreclosure and perhaps combat the foreclosure in court, consider speaking with a foreclosure lawyer. It's likewise an excellent idea to speak to a HUD-approved housing therapist about various loss mitigation choices.
